L2 International marketing strategy: globalisation

1 Overview 1 Introduction: examples of global companies and those at different. stages of globalisation. 2 Comparison of international with global marketing 3 Stages in globalisation 4 Key factors for success for companies wishing to globalise

2 Global marketing origins Introduction : Early work by Robert Buzzell proclaimed. the advantages of standardisation [1968 ] Seminal article by Theodore Levitt[ 1983] in which he said world markets were growing more and more homogeneous. Examples of American and Japanese and European global companies include K.F.C., Sony,Swatch, Mercedes- Benz

3 Key concepts of global marketing A comparison of Global v International marketing A global marketing company seeks to market globally/ to the world. Towards this end it will seek out one of its products and launch it globally. Its’ marketing activities will therefore be global/ the same for all countries. It assumes that markets are driven to a converging commonality Cateora &Hess An international marketing company seeks ‘ to tailor –fit’ its marketing strategy to a particular country / market environment.It adapts to particular markets Cateora &Hess

3 Key concepts of global marketing [continued] A further definition provides another insight this time about segmentation / buyer preferences Global markets are defined as’ those markets in which buyer preferences are similar across countries. Within each country, several segments with differing preferences may exist, but the country borders are not important segment limits. In some cases the global market is more like a regional market encompassing a trade area such as EC, NAFTA or Mercosur’ J. Johansson 2006

3 Key concepts of global marketing [continued] Customers – consumers analysed by common requirements world wide - business customers seen as having global networks. with centralised purchasing Countries - national boundaries disappear in favour of a supra national trading blocs Competitors- appear as same world- class players in every national market

3 Key concepts of global marketing [continued] Global products : these are standardised products. They offer higher quality, better value and more advanced features than alternative products in those countries. They are able to do this via combined production runs from several markets Global brands: these are brands that are available, well known and highly regarded throughout the world’s markets Global advertising: uses standardized campaigns where possible. Or, standard filmed footage with different ‘voice- overs’ in each language.

4 Stages in Globalisation 1st stage: export orientated company. This is where the company sells to overseas customers.Usually due to success with at least one of its products.Also in response to requests from overseas customers [ order takers] 2nd stage: overseas branch [s] are set up looking after marketing and sales plus after- sales service 3rd stage: the production base is relocated overseas e.g.Mulberry announced in Dec2006 that it would produce in China. 4th stage: other business functions transfer such as engineering, R&D,finance, personnel.[Complete insiderisation is when all business functions have transferred]. 5 th stage: ‘ coagulate functions’ sending some back to the centre e.g. corporate R&D. All members now feel part of a global family.All use local management.All are free to ‘act locally’e.g Levi Strauss.

Sources Kotabe &Helsen 2011 Hollensen 2007 Peng 2009 Johansson 2006 Keegan&Green 2008